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Under China’s Threat, Taiwan Needs Its Own Power Sources More Than Ever

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A Chinese military magazine, Naval and Merchant Ships, recently zeroed in on one of Taiwan’s biggest vulnerabilities. The island democracy, which China claims is part of its territory and threatens to overtake, imports more than 96 percent of its energy.

Most of it — oil, coal and liquefied natural gas — arrives by ship, and most of the oil is from the Middle East. China could debilitate Taiwan by blocking these ships and thereby “win without fighting,” the magazine said.

China’s most recent military drills around Taiwan simulated doing exactly that. These actions not only could devastate Taiwan but could bring the global economy to a standstill, because the world relies on Taiwan’s factories for the majority of advanced computer chips.

All countries need a mix of energy sources to ensure a stable fuel supply, said Thomas Isaacs, an expert on nuclear energy and waste. “But for Taiwan it is an order of magnitude more important,” he said.

Taiwan’s manufacturing sector, including its power-hungry chip factories, already eats up more than a third of the island’s energy supply. And as chipmakers like Taiwan Semiconductor Manufacturing Company, or TSMC, build more factories in Taiwan to keep up with skyrocketing demand for artificial intelligence chips, it has become even more important for the island to be able to make its own electricity.